The Importance of Employment Laws and Compliance with Intentions of the Laws

by Wanda Thibodeaux, Demand Media

Labor laws protect employees from discrimination and other abuses.

employment image by Marin Conic from Fotolia.com

Local, state and federal laws are in place relating to employment in the United States. These laws are of great importance because they offer protections to both the employee and employer. On the larger scale, compliance with these laws offers benefits to society as a whole, both on the interpersonal and financial levels.

Protection of Employee

In the United States, most employees and employers operate under what is known as a master-servant relationship. The employee, the servant, is expected to perform his duties under the supervision and for the good of the employer, the master, under this type of work relationship. However, employers, if left unchecked, sometimes abuse their power. Employment laws such as the Fair Labor Standards Act (FLSA) and the Age Discrimination in Employment Act are designed to balance out the master-servant relationship so that the employer cannot abuse or discriminate against the employee. Under these and additional labor laws, workers have the right to fair compensation, an equal opportunity for hire and a safe work environment.

Protection of Employer

The purpose of most labor laws in the United States is not to abolish the master-servant relationship, but rather to make it more equal and ensure that all individuals have the same opportunity to enter into such a relationship. Additionally, a key principle of capitalism is that businesspeople should have the opportunity to engage in commerce that could result in profits. Thus, some labor laws seek to protect the rights of the employer. For instance, employers don't have to hire someone they don't feel is qualified, and it is within the employer's rights to expect that employees show up on time and perform the duties for which they were hired. These laws ultimately protect the employer's productivity and, therefore, profits, as well as the ability to remain competitive in the marketplace.

Dual Protections

Labor laws offer some dual protections to both employers and employees. For instance, labor regulations dictate to some degree how employees should interact with other employees, as well as how employees and employers should interact. This can eliminate conflicts that prove stressful to everyone involved. Compliance with labor laws also is financially beneficial to both employees and employers. If an employer is compliant, for instance, he avoids fines stemming from not following the law, as well as potential lawsuits. Similarly, adherence to labor laws means that employees are properly compensated for the work they do and, in many instances, receive benefits such as reduced medical expenses.

Value Recognition

Labor laws, similar to any other laws, reflect the dominant values of the society in which people create them. For example, antidiscrimination laws are based on the underlying belief of human equality, while child labor laws reflect the belief that children should not work under certain conditions and may not have the mental capacity to understand the contracts and tasks which many jobs require. Compliance with labor laws is important because it indirectly preserves these underlying concepts, thereby stabilizing the overall value system of the society. Periods of change in labor laws reflect less stable social norms and a shift in dominant belief systems.

Economic Stability

Because labor laws preserve the right of the employer to profit and the right of the employee to compensation that can be spent and invested, labor laws are crucial to a healthy economy. Periods of economic growth reflect healthy businesses with employees who are earning enough to participate as consumers. Changes in employment laws, as well as laws on operating procedures in each industry, often happen during periods of economic recession.

About the Author

Wanda Thibodeaux is a freelance writer and editor based in Eagan, Minn. She has been published in both print and Web publications and has written on everything from fly fishing to parenting. She currently works through her business website, Takingdictation.com, which functions globally and welcomes new clients.

Photo Credits

Have Feedback?

Thank you for providing feedback to our Editorial staff on this article. Please fill in the following information so we can alert the Small Business editorial team about a factual or typographical error in this story. All Fields are required.